SonicBlue

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SONICblue Incorporated provides products for the Internet, digital media, entertainment, and consumer electronics markets. Its technology portfolio includes Rio® digital audio players, ReplayTV® personal television technology and software solutions, Go-Video® integrated DVD+VCRs and Dual-Deck™ VCRs, and digital home theater systems. SONICblue sells its products through retailers; mass merchants; other resellers; distributors; e-commerce Web sites, including its own on-line e-store; mail order catalogs; and national reseller organizations. It has sales, marketing, customer care, and technical facilities in various locations, including Oregon, Arizona, France, Germany, Japan, and the United Kingdom. Its competitors include Creative Technology under the name of Creative Labs, Compaq, Panasonic, Apple, Philips, Sony, Thomson Multimedia, Handspring, Motorola, Samsung, TDK, Gateway, HP, Kenwood, TiVo, RCA, Microsoft, and Pioneer. In March 2003, SONICblue and three of its wholly owned subsidiaries filed voluntary petitions for bankruptcy under Chapter 11 of the United States Bankruptcy Code. It manages and operates its businesses as a debtor-in-possession. In April 2003, SONICblue sold its GoVideo® business assets to Opta Systems, LLC., for $6.2 million. In the same month, the company sold its ReplayTV® and Rio® business units to D&M Holdings, Inc., with a combined purchase price of $36.2 million for both units. In May 2003, SONICblue™ signed an asset purchase agreement with Zoom Telephonics, Inc. Under the terms of the agreement, Zoom Telephonics agreed to acquire substantially all of SONICblue's modem business assets, including the trade names Diamond and Supra, for approximately $495,000, subject to adjustment.

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